Bank Balance Sheets Practice- Macro 4:13

Jacob Clifford explains bank balance sheets, covering assets, liabilities, reserves, and owner's equity. He uses examples to show how deposits and Federal Reserve actions affect the money supply. The video emphasizes understanding reserve requirements and the multiplier effect in banking.

What happens to the money supply when a bank loans out money?

What is the multiplier effect in relation to bank loans and the money supply?

Describe the impact of the Federal Reserve buying bonds on a bank's reserves.